**Charlie Munger: A Life of Wit and Wisdom**
*Rare Interview Highlights Berkshire Hathaway’s Search for “Elephant” Acquisition*
Charlie Munger, the Vice Chairman of Warren Buffett’s Berkshire Hathaway, recently sat down with CNBC’s Becky Quick for a special interview. Munger, who passed away this week at the age of 99, shared his thoughts on the company’s future and the ongoing search for an “elephant-sized acquisition.”
**A Sizeable Challenge**
“We have $160 billion in cash, plus a great credit rating we deserve. And who in the hell has that? Not very many,” Munger said, highlighting the company’s financial strengths. However, he also expressed the need for a significant deal, one that is big enough to utilize their substantial cash reserves and potentially involve borrowing as well.
As of September, Berkshire Hathaway boasted a record-setting $157.2 billion in cash, signaling the challenge of finding an acquisition large enough to make a meaningful impact on the company’s financials.
**The Search Continues**
Warren Buffett, the Oracle of Omaha, has long been on the lookout for an “elephant-sized acquisition.” Recent purchases, including Alleghany Corp for $11.6 billion and Dominion Energy’s natural gas assets for almost $10 billion, did not quite meet the company’s lofty expectations. Despite the acquisition of these businesses, Berkshire’s total market value now approaches $800 billion, emphasizing the need for an even larger deal.
**Passing the Baton**
Munger also reflected on the possibility of the next generation of leaders within Berkshire Hathaway being the ones to pull off an acquisition of this scale. Potential candidates, such as Vice Chairman of Berkshire’s non-insurance operations Greg Abel, designated successor Ajit Jain, and Buffett’s two investing lieutenants, Ted Weschler and Todd Combs, could be the ones to make the next major decision for the company.
As interest rates have risen, Berkshire’s massive cash reserves have turned into a substantial source of income. Munger had previously defended the inaction by emphasizing the advantages of sitting on cash, biding time, and waiting for the right opportunity.
**An Ongoing Quest**
Throughout the years, Munger and Buffett have been persistent in their search for a deal that would utilize Berkshire’s hefty cash reserves. Despite Munger’s passing, the search for the elusive “elephant-sized acquisition” continues, as the company seeks to leverage its financial strength for a transformative move in the market.
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